Tuesday, October 05, 2004

Breaking News- My Company Sold !!

Whewwwwwww..how exciting !! Q3 end seemed the best entrance strategy. 3 months to level out and UPS now becomes the largest Player in the market. Now, thats something that I like. But, how long will this transit from MWW to UPS will take ??

Anyway, The playing field becomes bigger..more exciting now. I had this feeling it was coming, but then again.. wh know's eh ???

NYSE quick quote : 1300HRS EDT
Since resuming trading, shares of CNF were trading at $43.89, up $2.04, or 4.9%, on heavier-than-normal volume. Earlier, the shares hit a new 52-week high of $44.03, up from the previous high of $43.01 reached July 21. The 52-week low, set $30.50, is Feb. 17.


MArket watch : UPS and FedEx have a combined market share in the U.S. of more than 70%, while DHL holds just 6% of the market.

UPS is also a major player in RFID.

Read my RFID blogs here

I whisper..."Do I still have a job ?"

/pd

!!Update!!Update!!

Just got of the Lightening Investor CNF Concall. Some the question from investors and answers (described as my thought flick'r) !!!

What is the risk management strategy for synergy cohesiveness for Sales& Market and how will the gains be used for new business strategy ?
Proceeds not to be used for aqusition but will be used to merger costs. These costs will be leveled out in 2005 and effects will be approx a penny a share!!

What happens to the remaining 2 business Units. Will there be cost cutting and plan to create a synergy for collobration of these units under one umberalla.
Yes, we will rightsize to move all units under a single folio. Global Solutions is the projected way for the current folio!!

Was the logistcs pices on the table as part of the deal ?? Were options were on the table ??
Aquistion team opted for various pieces.

What is the MWW head count that will be transfered to UPS ?
All head counts will go to UPS.

How does the Depreciation leveling look like once the complete transfer has occured ?
About 2or 3 cent costs per Quarter. No offset at current projections.

Commitment for tendering or calling for debt ratio and what is the credit rating standings ?
Postive comments from credit rates. Covenent with the Banks is in good standing. No degradtion to investment grading. Debt instruments is being used for leverage of Cash accruals (130Millon).

Timing for closure of Transaction
3 jurisdication needs to be looked. Transaction closure slotted for end of Q4/04.

Outsourcing contracts for MWW. Do these Outsourcing go with transaction ??
They go with the Transaction to UPS.

Tradelines that being given up to UPS. How much was market segmentation.
1/3 is import, 1/3 is exports and approx 1/3 never touched the US.


Summary Brief
CNF is moving towards a consolidated Global Logistics player. The merger of Conway, Menlo Logistics, Vector SCM will formulate leaner organization, which will prove higher investment rations. CNF's strategy looks firm. Growth factoring looks ripe. time will tell !!!!

UPS's strategy should be based on assimliation with a "new wave culture" theory, to sustain vision of Broader Supply Chain Initatives to enable Global Commerce.


/pd


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